Property investment in Birmingham: real estate market in 2020
Birmingham is often affectionately referred to as the second city of Britain, having one of the largest populations outside of London. With a GVA of £226 billion, Birmingham has the one of the biggest legal and financial services centres outside London. It also enjoys a geographically advantageous location in the region, as in less than four hours is needed for 90 percent of the population to reach Birmingham.
It is predicted that more people will move to Birmingham with the construction of HS2, and commute to London. It will take 49 minutes for HS2 to move between Birmingham and London – the average London trip to work is 45 minutes (Read our real estate London review here). Can you imagine the effect that this would have on house prices in Birmingham?
Further commuting would increase land demand and therefore push up the related costs of new construction. The viability of new projects is limited as land costs increase. More investments mean more demand for a small supply, which is good for rental income and growth in property.
Which are the best places in Birmingham to buy?
The Birmingham city center is right in the heart of the city. Real estate in the city center of Birmingham produces on average rental yields of about 5 percent, with an rise in real estate value of 27 percent over the past four years. The Birmingham city center attracts huge levels of demand from people who want to live within the hustle and bustle of the city. That’s why city center apartments make a lucrative option when it comes to property in Birmingham, catering to demand from young urban tenants who want to be close to their place of work. With a range of redevelopment projects in store for the city, including the new £700m paradise development, property growth is likely to continue in downtown.
If you are looking for a place a little greener somewhere and can really afford to splash the cash, Sutton Coldfield may be for you. There’s something for everyone there – a range of golf courses and Birmingham’s largest recreation center to please a sports enthusiast, theaters and cinemas for those looking for evening entertainment, and a collection of big high street stores combined with the casual shopper’s independent shops. Perhaps the biggest pull-factor is Sutton Park, Europe’s seventh largest urban park and home to nature walks, many lakes and a variety of restaurants. If all this isn’t enough, Birmingham Center is only a 30-minute ride away from the station. Yet all of that comes at a price – a detached house’s average cost is almost £500,000.
With one of the UK’s biggest shopping centers, Europe’s largest regional library and more canals than Venice, Birmingham has plenty to offer to everyone. But it’s important to think very carefully before you buy, with so much variety at hand.
If you have a family, then Moseley might be a good choice for you. Just 20 minutes by bus from Birmingham city center, this suburb has everything you need, and more. It has a private 11-acre park (an annual membership is just £40, or you can visit one day for free) to spend the weekend away with the kids, but there’s plenty for adults too – a variety of street-lined pubs, bars, cafes and restaurants and a number of music festivals in the summer. But it still retains a village atmosphere – on the last Saturday of each month there is a farmers market and the people are proud of the community sense. Moseley is home to many excellent schools including a children’s school on the Autism Spectrum, and it was named the best placed to live by the Sunday Times. Provided you can afford it – a semi detached property’s average price is £402,661 – Moseley may well become your new home.
Recently named by the Sunday Times as the Coolest Neighborhood in Britain, Digbeth is a great choice for the hipster vying for city vibes. Known as an old industrial district, it is now fast becoming a lively downtown hub with plenty of art, music, independent shops, cafés, bars and restaurants. As the population of Digbeth increases steadily, each year new blocks of apartments converted from old warehouses appear. Home to a cluster of artistic businesses and street art festivals like no other, it’s no wonder that Digbeth is increasingly popular. The average property cost in Digbeth is £150,389 – an incredible 19 percent rise over the previous year, so get in there while you can!
If you don’t want to feel like you’re living right in the city center, Edgbaston might be good for you, especially if you’re a lover of sports. Most of the property belongs to the conservation-focused Calthorpe Estate, and despite being just a 10-minute drive (or 30-minute walk) from the city center, Edgbaston is home to quiet parks, old Victorian houses and tree-lined streets. The region’s pull-factors are the Edgbaston Cricket Ground and Edgbaston Priory Club, and the area is famous for its family-friendly tennis venues. Edgbaston is home to brilliant schools and Birmingham University, and houses the first Michelin-stared restaurant in Birmingham, Simpsons, which is part of the suburb’s diverse dining experience. Edgbaston’s average house price is £315,743, but detached houses are more than double that size – so if you’re looking for a big property, Moseley may be a little more reasonable.
Erdington, with its abundance of affordable terraced houses, is a perfect choice for those on a tight budget. You can find most of the shops you need on Erdington High Street, and if you choose to go to central Birmingham, you can get to the Bullring by public transit in 20 minutes, or less if you take a taxi. As far as green space is concerned, you can drive to Sutton Park, one of UK’s largest urban parks, or you can visit nearby Rookery Park for a stroll through the woods, a tennis game, or just relax in the sun. You could buy a terraced house at Erdington for an average of £157,485, or a flat for an average of £101,141.
Buy-to-Let Birmingham Investment
Continuous urban development and investment has influenced both residents in and out of town to take advantage of what the town has to offer. Most notably the fact that more people are opting to leave cities like London for cheaper alternative lifestyles, with Birmingham seemingly at the top of the list for many.
Investors searching for their next buy-to-let Birmingham property investment will find the top hot spots across the city to ensure the highest returns. Postcodes such as B1 and B5 are widely sought after buyers’ addresses, as the area provides excellent transport links and local amenities.
Can expats buy land in Birmingham?
There are no legal limitations that apply to expats buying property in the UK. Foreigners and non-residents can also obtain a mortgage in the United Kingdom, although those with less than two years of residency in the United Kingdom and without a job in the United Kingdom may face stricter requirements and may have to pay a larger deposit. If buying a home in the UK, you may need to hire a British solicitor or conveyor to manage legal paperwork.
In general terms, the same taxes apply to non-residents on property and property-related income as to UK residents. Stamp duty is charged at the same rate and Capital Gains Tax is levied at the same rate if the property is sold at a profit. If you are a non-resident landlord of a UK property, you will have to pay rental income tax in the same way as resident landlords, although if you pay tax on this income in your home country and your country has a double taxation agreement with the UK, you may be able to get an exemption.